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XRP Price Diverges: ETFs Gain, Token Lags
21 Nov
Summary
- XRP ETFs see significant institutional inflows totaling over $293 million.
- XRP token price remains subdued, down over 40% from its July high.
- Market sentiment is cautious due to Fed rate cut expectations fading.
The market introduction of XRP-focused Exchange Traded Funds (ETFs) has garnered substantial institutional capital, with cumulative inflows surpassing $293 million. The Bitwise XRP ETF, launched on November 20, experienced robust initial trading, indicating significant investor appetite. However, this institutional accumulation has not yet translated into a sustained price rally for XRP-USD, which hovers near $2.03, a stark contrast to its July high of $3.65.
The subdued performance of the XRP token amidst strong ETF inflows can be attributed to broader macroeconomic factors. Fading expectations for Federal Reserve rate cuts have pressured major cryptocurrencies, including XRP. Technical indicators also suggest a bearish outlook, with key moving averages forming a death cross pattern and the Relative Strength Index signaling persistent selling momentum. This divergence underscores a structural lag, where ETF creation and redemption processes create a disconnect with immediate spot market movements.
Despite short-term price volatility, the launch of regulated XRP ETFs represents a significant step towards mainstream institutional adoption. These ETFs offer U.S. investors direct, physically-backed exposure to XRP, enhancing its legitimacy within regulated markets. Ripple's recent strategic moves, including a $500 million funding round and partnerships aimed at integrating stablecoin payments, further bolster XRP's long-term prospects in cross-border settlements. While price consolidation between $1.95 and $2.20 is expected, the structural progress points towards sustained confidence in XRP ETFs as credible long-term holdings.
